01—Abstract
Summary
Summary of the 10-K filed February 21, 2025. Cited figures are marked; the original filing is the authoritative source.
WEC Energy Group, Inc. reported 2024 net income attributed to common shareholders of $1,527.2 milliona, or $4.83 diluted earnings per share, up from $1,331.7 million, or $4.22 per share, in 2023.
The increase was driven mainly by the Illinois segment, where a $178.9 millionb impairment recorded in 2023 related to ICC disallowances did not recur, along with higher margins from the PGL and NSG rate orders, and by the non-utility energy infrastructure and electric transmission segments. The Wisconsin segment contributed $863.1 million, up $11.8 million, reflecting limited rate case re-openers effective January 1, 2024. WEC's capital plan calls for approximately $28.0 billion of capital expenditures, including about $24.4 billion for regulated utilities from 2025 to 2029 and approximately $9.1 billion of regulated renewable investment in Wisconsin over that period.
Capital expenditures were $2,781.1 millionc in 2024, and the company expects to spend approximately $4.5 billion on reliability projects from 2025 to 2029. Total debt was $20,023.7 million at year-end, with a debt-to-total-capitalization ratio of 61.7% on an actual basis. The company completed several renewable acquisitions in 2024, including Delilah I and Maple Flats, and acquired Hardin III in February 2025 for approximately $405.9 million.
Regulatory and legal developments remain significant. The ICC's February 20, 2025 order directs PGL to replace cast and ductile iron pipe under 36 inches in diameter by January 1, 2035, and PGL is evaluating its impact on operations and capital plans. PGL and NSG have appealed the ICC's disallowances of capital costs.
The PSCW approved 2025 and 2026 base rate increases for WE, WPS, and WG effective January 1, 2025 and 2026. The company also raised its quarterly dividend to $0.8925d per share in January 2025, an annual rate of $3.57 per share, and continues to target a 65-70% payout ratio.
02—Key points
Key Highlights
- Net income attributed to common shareholders rose $195.5 million to $1,527.2 million in 2024, and diluted EPS increased to $4.83 from $4.22.
- The Illinois segment's net income increased $112.1 million to $252.1 million, mainly because a $178.9 million 2023 impairment related to ICC disallowances did not recur.
- The company plans approximately $28.0 billion of capital expenditures in its capital plan, including about $24.4 billion for regulated utilities from 2025 to 2029.
- The company's goal is to reduce electric generation fleet carbon emissions by 60% by the end of 2025 and 80% by the end of 2030, from a 2005 baseline; it had achieved a 56% reduction by year-end 2024.
- Total debt was $20,023.7 million at December 31, 2024, with a debt-to-total-capitalization ratio of 61.7% on an actual basis.
- Quarterly dividend was raised to $0.8925 per share in January 2025, an annual rate of $3.57, with a stated payout target of 65-70% of earnings.
- The ICC's February 2025 order requires PGL to replace cast and ductile iron pipe under 36 inches in diameter by January 1, 2035, and the company is evaluating its effect on operations and capital plans.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2024, Wec Energy Group kept $0.18.
- Revenue$8.60B100.0%
- Cost of revenue−$2.66B30.9%
- Gross profit$5.94B69.1%
- Operating costs−$3.79B44.1%
- Operating income$2.15B25.0%
- Interest, other & tax−$625.6M7.3%
- Net income$1.53B17.8%
Where FY2024 revenue went
$8.60B- Operating costs: $3.79B, 44% of revenue
- Cost of revenue: $2.66B, 31% of revenue
- Net income: $1.53B, 18% of revenue
- Interest, other & tax: $625.6M, 7.3% of revenue
Kept 18% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2024filed February 21, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $8.60B$8.89B | −3.3% |
| Cost of Revenue | $2.66B$3.19B | −16.8% |
| Gross Profit | $5.94B$5.70B | +4.2% |
| Operating Expenses | $6.45B$6.99B | −7.7% |
| Operating Income | $2.15B$1.91B | +12.8% |
| Net Income | $1.53B$1.33B | +14.7% |
| EPS (Basic) | $4.83$4.22 | +14.5% |
| EPS (Diluted) | $4.83$4.22 | +14.5% |
| Shares Outstanding (Basic) | 316.20M315.40M | +0.3% |
| Shares Outstanding (Diluted) | 316.50M315.90M | +0.2% |
05—Questions
Frequently Asked Questions
Why did earnings increase significantly in 2024?
Net income attributed to common shareholders increased $195.5 million, mainly due to the Illinois segment, where a $178.9 million impairment recorded in 2023 related to ICC disallowances did not recur, and where higher margins followed the PGL and NSG rate orders. The non-utility energy infrastructure segment rose $44.8 million, and the electric transmission segment rose $21.9 million, partly due to a FERC ROE order in October 2024. The Wisconsin segment increased $11.8 million.
What is the scale of WEC's planned capital investment?
The company expects total capital expenditures of approximately $28.0 billion in its plan, with about $24.4 billion for regulated utilities from 2025 to 2029 and approximately $9.1 billion for regulated renewable energy in Wisconsin over that period. Capital expenditures totaled $2,781.1 million in 2024.
What regulatory risks does the Illinois business face?
The ICC disallowed certain previously incurred capital costs in November 2023, and PGL and NSG have appealed those orders to the Illinois Appellate Court. The ICC's February 20, 2025 order directs PGL to replace cast and ductile iron pipe under 36 inches in diameter by January 1, 2035, and indicates that noncompliance could subject the company to civil penalties. The filing states that future recovery of existing and future Illinois capital investments is uncertain. PGL's 2016 QIP reconciliation resulted in a $25.3 million pre-tax charge in 2024, and the 2017 through 2023 QIP reconciliations remain pending.
How leveraged is the company and how does it fund its plan?
Total debt was $20,023.7 million at December 31, 2024, and the debt-to-total-capitalization ratio was 61.7% on an actual basis and 60.6% on an adjusted basis that treats the Junior Notes partly as equity. The company funds its plan through operating cash flow, commercial paper, long-term debt issuance, and an at-the-market equity program authorized at up to $1.5 billion, under which it issued $98.3 million of common stock in 2024.
What drove renewable energy investments and tax credit monetization?
WECI acquired several renewable facilities in 2024, including Delilah I and Maple Flats, and completed the acquisition of Hardin III in February 2025 for approximately $405.9 million. Under the IRA transferability option, the company sold substantially all of its 2023 and 2024 production tax credits to third parties and agreed to sell the majority of its expected 2025 PTCs, and it received $269.1 million in cash for 2023 and 2024 PTCs sold.
06—Continue